Americans blaze a trail with low-cost investment service

The US fund management giant Vanguard is following in the footsteps of British rivals in the CityGetty Images

Looking at the margins of Hargreaves Lansdown, it is not surprising that Vanguard decided the British market was ripe for the taking and has launched a low-cost online rival to the investments giant.

Last year Hargreaves’ investment service had an operating profit margin of 66.8 per cent, about three times the ratio reported by some other wealth managers, highlighting the returns to be made from helping affluent Britons to manage their money.